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Jun 17, 2013
06/13
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>> i still think we prefer the dividend payers, because in this environment, the fed isn't going to adjust its underlying interest rate policy likely for a year, possibly two years or month. as a consequence, i still think dividend payers will continue to attract sponsorship. that said, i also think a more strict stance is warranted given the fact if the fed continues to taper, it ought to be because of employment growth and corporate profitability, ultimately. >> you're nodding your head. where are you putting your money to work right now? >> i agree that cyclical sectors, they look more appealing. they've become bond proxies because you couldn't find that. in the ten-year yield, if you're buying valcom stocks, you're saying, you know what, i'm getting more value on the cyclical side. >> so what are you buying here? >> financials and industrials. financials a steeper yield curve tends to benefit financials over the next couple years, that's our view. and industrials, prices coming down. that's an input cost for industrials, especially u.s.-based industrials that might perform well over th
>> i still think we prefer the dividend payers, because in this environment, the fed isn't going to adjust its underlying interest rate policy likely for a year, possibly two years or month. as a consequence, i still think dividend payers will continue to attract sponsorship. that said, i also think a more strict stance is warranted given the fact if the fed continues to taper, it ought to be because of employment growth and corporate profitability, ultimately. >> you're nodding...
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Jun 20, 2013
06/13
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basically, in a rising rate environment, banks sufrt worst. they collectively fall 3.8% over three-month period in a rising-rate climate. i think there are three reasons. one, because of the net interest margins that is where we borrow short and lend long. also, banks own a lot of bonds. we know what is going to happen as far as bond values go. when rates go higher. also i just think more in the present here, if there's a sector right now that's due to kul of cool off, it is the banking stocks. >> rerecently jamie dimon said they would make 200 million on every basis point in moves. >> that, the logical point. but up is down, down is up. and i think it is a difficult calculus that things have to use here to navigate their way through. it is probably a pretty nasty mine field ahead. >> jeff, stay here. not everyone agrees with your point of view. >> joining us to make his case and why rising rates are positive for banks. brendon hawkin of ubs, what do you think of jeff's reasoning and traditional reasoning says a steeper yield curve is better f
basically, in a rising rate environment, banks sufrt worst. they collectively fall 3.8% over three-month period in a rising-rate climate. i think there are three reasons. one, because of the net interest margins that is where we borrow short and lend long. also, banks own a lot of bonds. we know what is going to happen as far as bond values go. when rates go higher. also i just think more in the present here, if there's a sector right now that's due to kul of cool off, it is the banking stocks....
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Jun 20, 2013
06/13
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FBC
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the reactions tend to be overblown, particularly in this environment. cheryl: yesterday, frankly, it was the end of the day the suckers we saw selling off were the ones that you tend to like, as you and i have spoken before on this show, consumer discretionary, industrial, things like that, utilities, those were our safe plays -- >> we haven't done a lot of utilities, and we haven't done a lot of stuff -- the stocks that have been used as bond proxies, utilities, for example, folks have been buying them for the big dividend, and i think they have forgotten those are stocks. when the markets go down even though safe havens, a little pressure. cheryl: they view that as a safe haven as many do -- we don't view them that way at all. they tend to be very leveraged, and we don't do leveraged companies. they need cap tap markets to grow. those aren't long-term businesses we want to own for a really long climb. cheryl: let's talk about some of the stocks you do like. if you're a stock picker and you're looking at a market like today and you finally say i'd love
the reactions tend to be overblown, particularly in this environment. cheryl: yesterday, frankly, it was the end of the day the suckers we saw selling off were the ones that you tend to like, as you and i have spoken before on this show, consumer discretionary, industrial, things like that, utilities, those were our safe plays -- >> we haven't done a lot of utilities, and we haven't done a lot of stuff -- the stocks that have been used as bond proxies, utilities, for example, folks have...
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Jun 19, 2013
06/13
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. >> real quick on the regulatory environment. i was having a conversation about this yesterday with somebody. given the fees and the new regulatory, you know, higher regulations out there, do small and midcap banks get the short end of the stick there? because when you look at a larger bank that has a much higher market value than a smaller and midcap bank, they're facing the same fees, right? one with more assets and a higher market cap can handle it much better, right? >> oh, there's no doubt that the current regulatory environment is tilted so far in the direction of the big banks. because they can have floors of staffs just dealing with these regulations. >> right. >> whereas, when you're talking to folks lending to small and medium-sized businesses, we're much smaller and we have to deal with those issues with less forces. same issues, fewer people to do it, and less dollars to lend to the job creators of the country. >> yeah, that's very curious to me. anyway, gentlemen, thank you very much. great conversation. we appreciat
. >> real quick on the regulatory environment. i was having a conversation about this yesterday with somebody. given the fees and the new regulatory, you know, higher regulations out there, do small and midcap banks get the short end of the stick there? because when you look at a larger bank that has a much higher market value than a smaller and midcap bank, they're facing the same fees, right? one with more assets and a higher market cap can handle it much better, right? >> oh,...
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Jun 21, 2013
06/13
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how are you dealing with this much more intensified regulatory environment? >> well, no question, maria, this is a long list. well, maybe as a first comment, bnp paribas believes in a sound international regulatory government. we believe it's going to be good for the industry medium term and it's good for the economy. having said that, you are absolutely right. it's an additional layer of complexity. as it relates to regulation, it's not so much regulation that's the challenge. this is more like when first the uncertainty, we still have a lot of uncertainty there in terms of some rules still needed to be drafted, and this is really the lack of coordination between u.s. and europe. >> right. so do you think there should be a global standard, or can we operate -- i mean, what happens to the -- to the u.s. banks or the french banks if you've got different rules, and you're all operating in the same places around the world? >> well, you know what, a global standard would probably be the right way to go. you know, i'm a very optimistic person. i do believe that, y
how are you dealing with this much more intensified regulatory environment? >> well, no question, maria, this is a long list. well, maybe as a first comment, bnp paribas believes in a sound international regulatory government. we believe it's going to be good for the industry medium term and it's good for the economy. having said that, you are absolutely right. it's an additional layer of complexity. as it relates to regulation, it's not so much regulation that's the challenge. this is...
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Jun 20, 2013
06/13
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we will hear how they are feeling about this environment throughout. expect some pretty exciting after hours action, maria. >> thank you so much, john. straight back to the stunning market activity. with me is cynthia, michael penta, brian reling, and heather hughs and our own rick santerry. keith blish back with us as well. thanks for joining in. quite a day. not necessarily unexpected, however. cynthia, what do you do now? >> i think we just rip the band-aid off in terms of rate. i think we are at levels where we have hit before. that we think we could retrace from here. i think there is opportunity in the yielding names that have dividend growth. we have over 10,000 maine americans retiring each and everyday over the next 19 years. i like the names with higher dividend yield. and the opportunity to grow it. i think those are the types of names that that do well as we go from here. >> are you hearing from client that they are nervous they are throwing in the towel? what conviction do you see? >> we have seen that through the bond fund and redemption.
we will hear how they are feeling about this environment throughout. expect some pretty exciting after hours action, maria. >> thank you so much, john. straight back to the stunning market activity. with me is cynthia, michael penta, brian reling, and heather hughs and our own rick santerry. keith blish back with us as well. thanks for joining in. quite a day. not necessarily unexpected, however. cynthia, what do you do now? >> i think we just rip the band-aid off in terms of rate....
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Jun 18, 2013
06/13
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but again, i think you're going -- you're going to have to see a different valuation environment and a different growth environment before -- before private equity firms are going to get much more aggressive. the opportunity set that was out there, and that drew a lot of private equity capital over the past three or four years, was around distress and around valuations that were depressed. and that situation has corrected itself significantly, and so, the opportunity set is very different today than it was three, four years ago. >> interesting stuff. rich hendrix, thank you so much. >> thanks for having us. >> we appreciate it. >>> new developments on the so-called marijuana mom. andrea day with the story. >> reporter: she's the suv driving mom from scarsdale, new york, who, as you remember, was busted last month. well now, andrea has been indicted for manufacturing and possessing marijuana with the intent to distribute it. now, authorities say she was running a major warehouse in queens just filled with state-of-the-art lighting, irrigation, electrical, and ventilation systems. the
but again, i think you're going -- you're going to have to see a different valuation environment and a different growth environment before -- before private equity firms are going to get much more aggressive. the opportunity set that was out there, and that drew a lot of private equity capital over the past three or four years, was around distress and around valuations that were depressed. and that situation has corrected itself significantly, and so, the opportunity set is very different today...